We have heard from several federal and state banking regulators that the factors that may be determinative in a bank’s application for TARP Capital are continuing to change. We understand that federal regulators now want a “with” and “without” projection for each application, and want larger banks to indicate a willingness to buy failed and failing banks (to this end we’ve been told of large client that was given a physical list of potential banks to be bought).
One of our clients has a residual Fair Lending issue, but was told that since they have a Satisfactory CRA rating, the Fair Lending issue would not prevent the bank from receiving TARP Capital. That client was also told that the projections should show a CRE concentration of less than 300%. Finally, the client was told to file its Application as a “Confidential Draft” to avoid public scrutiny.
Related Posts
- Should You File an Application Early? - October 27, 2008
- New FDIC Guidance on Application Timing - October 27, 2008
- An Update on the Application Backlog - June 29, 2009
- Approaching Clarity on TARP “Viability” Standards? - January 28, 2009
- TARP Capital Application Process - October 28, 2008
